Zurich Financial Services Group announced today they enter into exclusive contract negotiations with CSC for the provision of data center and information technology (IT) infrastructure managed services in Europe and North America and covering data center centralization and server virtualization.
CSC and Zurich are currently negotiating a ten-year master service agreement which will provide for country specific agreements to be entered into by the parties. The potential total contract value is estimated to be approximately up to $2.4 billion assuming provision of the full scope of services over the ten-year term. Services are expected to commence under the master service agreement and one or more country specific agreements in the first half of 2010.
The exclusive negotiation period is for six months. Any agreements are subject to regulatory and other approvals and notifications, including certain workers councils. There can be no assurance that CSC and Zurich will reach a final agreement on the master service agreement or any particular country agreements, that required approvals will be received, or that a transaction will take place.